GOLDEN, Colo., Feb. 26, 2015 /PRNewswire/ -- Golden
Minerals Company ("Golden Minerals" or the "Company") (NYSE MKT:
AUMN) (TSX: AUM) announced today the results of a National
Instrument (NI) 43-101-compliant Preliminary Economic Assessment
(the "PEA") for its Velardena Properties which are located in
Durango State, Mexico.
Key highlights from the PEA include:
- Significantly higher grades of silver and gold than reported in
the Velardena Properties' 2012 NI 43-101 report
- Cash costs, after by-product credits, per payable ounce of
silver (see 'Non-GAAP Financial Measures' below) averaging
$9-$10 for the Company's current four
year mine plan
The first table below shows the mineral resource estimate as at
December 31, 2014 with a net smelter
return (NSR) cutoff calculated using three year trailing average
prices for silver, gold, zinc and lead. The second table
shows the mineral resource estimate as at December 31, 2014 calculated using December 2014 prices.
|
Tonnes
(M)
|
Silver
(Moz)
|
Gold
(Moz)
|
Silver Eq. (M
oz)
|
Silver
g/t
|
Gold
g/t
|
Measured
|
0.53
|
4.81
|
0.074
|
9.24
|
281
|
4.3
|
Indicated
|
1.26
|
10.84
|
0.148
|
19.71
|
268
|
3.6
|
Measured +
Indicated
|
1.79
|
15.65
|
0.222
|
28.94
|
272
|
3.8
|
Inferred
|
2.14
|
18.66
|
0.282
|
35.58
|
271
|
4.1
|
- This resource estimate assumed a three year trailing average
silver price of $25 per troy ounce
and a gold price of $1,446 per troy
ounce and a cutoff grade that generates a minimum $100 per tonne NSR
- Silver equivalents are calculated at 60:1
|
Tonnes
(M)
|
Silver
(Moz)
|
Gold
(Moz)
|
Silver Eq. (M
oz)
|
Silver
g/t
|
Gold
g/t
|
Measured
|
0.42
|
4.32
|
0.065
|
8.9
|
321
|
4.9
|
Indicated
|
0.95
|
9.5
|
0.126
|
18.35
|
311
|
4.1
|
Measured +
Indicated
|
1.37
|
13.83
|
0.192
|
27.25
|
314
|
4.4
|
Inferred
|
1.59
|
16.43
|
0.239
|
33.17
|
320
|
4.7
|
- This resource estimate assumed current prices as of
December 2014 of $17 per troy ounce of silver and $1250 per troy ounce of gold and a cutoff grade
that generates a minimum $100 per
tonne NSR
- Silver equivalents are calculated at 70:1
Golden Minerals has issued the following guidance estimates for
calendar year 2015:
|
Q1
2015
|
Q2
2015
|
Q3
2015
|
Q4
2015
|
Full
Year
|
|
|
|
|
|
|
Payable
AgEq
|
100 - 150
|
200 - 250
|
250 - 300
|
250 - 300
|
800 -
1,000
|
Cash
Costs/oz
|
$20 - 30
|
$15 - 20
|
$10 - 15
|
$10 - 15
|
$12 - 15
|
- Payable production in '000 of silver equivalent ounces (AgEq
oz), including silver and gold but excluding lead and zinc. Silver
equivalents calculated at 70:1.
- Cash costs, after by-product credits, per payable ounce of
silver (see 'Non-GAAP Financial Measures' below). By-product
credits include forecasted revenues from gold, lead and zinc. These
amounts assume a $1,250 per ounce
gold price.
Tetra Tech is an independent engineering firm that served as
principal author of the PEA and prepared the PEA on behalf of the
Company. Nick Michael is the
independent Qualified Person from Tetra Tech who reviewed and
approved this press release.
An NI 43-101-compliant technical report which will include the
PEA will be filed on SEDAR (www.sedar.com) and made available on
the Golden Minerals website within 45 days.
About Golden Minerals
Golden Minerals is a Delaware
corporation based in Golden,
Colorado. The Company is primarily focused on operations at
its Velardena Properties and the exploration of properties in
Mexico and Argentina.
Cautionary Note to U.S. Investors concerning Estimates of
Measured, Indicated and Inferred Resources
This press release uses the terms "measured resources",
"indicated resources" and "inferred resources" which are defined
in, and required to be disclosed by NI 43-101. We advise U.S.
investors that these terms are not recognized by the United States
Securities and Exchange Commission (the "SEC"). The
estimation of measured resources and indicated resources involves
greater uncertainty as to their existence and economic feasibility
than the estimation of proven and probable reserves. Mineral
resources are not mineral reserves, and U.S. investors are
cautioned not to assume that measured mineral resources or
indicated mineral resources will be converted into reserves.
The estimation of inferred resources involves far greater
uncertainty as to their existence and economic viability than the
estimation of other categories of resources. U.S. investors
are cautioned not to assume that estimates of inferred mineral
resources exist, are economically mineable, or will be upgraded
into measured or indicated mineral resources.
The PEA is preliminary in nature; it includes inferred mineral
resources that are considered to be too speculative geologically to
have economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Non-GAAP Financial Measures
Cash costs, after by-product credits, per payable ounce of
silver is a non-GAAP financial measure that is widely used in the
mining industry. Under generally accepted accounting
principles in the United States
(GAAP), there is no standardized definition of cash cost, after
by-product credits, per payable ounce of silver, and therefore
the Company's forecasted cash costs may not be comparable to
similar measures reported by other companies.
Forecasted cash costs for the Velardena Properties were
calculated based on the mining plan, and include all forecasted
direct and indirect costs associated with the physical activities
that would generate concentrate products for sale to customers,
including mining to gain access to mineralized materials, mining of
mineralized materials and waste, milling, third-party related
treatment, refining and transportation costs, on-site
administrative costs and royalties. Forecasted cash costs do not
include depreciation, depletion, amortization, exploration
expenditures, reclamation and remediation costs, sustaining
capital, financing costs, income taxes, or corporate general and
administrative costs not directly or indirectly related to the
Velardena Properties. By-product credits include forecasted
revenues from gold, lead and zinc contained in the products sold to
customers. Cash costs, after by-product credits, were divided by
the quantity of payable silver forecasted for the period to arrive
at cash costs, after by-product credits, per payable ounce of
silver. Cost of sales is the most comparable financial measure,
calculated in accordance with GAAP, to cash costs. As compared to
cash costs, cost of sales includes adjustments for changes in
inventory and excludes net revenue from by-products and third-party
related treatment, refining and transportation costs, which are
reported as part of revenue in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act and applicable Canadian securities legislation,
including statements regarding estimates of measured, indicated and
inferred resources and forecasts of payable metals to be produced
and cash costs, after by-product credits, per payable ounce of
silver at the Velardena Properties in 2015. These statements are
subject to risks and uncertainties, including: changes in
interpretations of geological, geostatistical, metallurgical,
mining or processing information and interpretations of the
information resulting from future mining and processing experience;
new information from drilling programs; reliability of
metallurgical testing results and changes in interpretation based
on processing results; delays or problems in mining or processing
or the ramp-up at the Velardena Properties; variations in ore
grade and metallurgical characteristics of processed material;
delays or failures in receiving government approvals or permits or
suspensions of existing approvals and permits; failure to achieve
anticipated metal recoveries or anticipated mining or processing
results including expected quantities of anticipated saleable
products; failures of new mine plan, stope development and slusher
techniques to meet expectations; mining and processing costs in
excess of those anticipated; unexpected variations in mineral
grades, types and metallurgy; fluctuations and continuing declines
in silver and gold metal prices; technical, permitting, mining,
metallurgical, recovery or processing issues; problems that delay
or reduce underground mine and stope construction; operational
changes or problems; failure of mined material to meet
expectations; failure of veins mined to meet expectations;
increases in costs and declines in general economic conditions; and
changes in political conditions, in tax, royalty, environmental and
other laws in Mexico, and
financial market conditions. Golden Minerals assumes no
obligation to update this information. Additional risks
relating to Golden Minerals may be found in the periodic and
current reports filed with the Securities Exchange Commission by
Golden Minerals, including the Company's Annual Report on Form 10-K
for the year ended December 31,
2013.
For additional information please visit
http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060
Investor.relations@goldenminerals.com
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SOURCE Golden Minerals Company